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Residual Stock Portfolio – $41M Refinance & Restructure

Residual Stock Portfolio – $41M Refinance & Restructure

Service

Residual Stock Portfolio – $41M Refinance & Restructure

Client

Private Property Development Group

Location

Victoria

Industry

Property Investment

Deal Team

Lead Advisor

Chris Papdopoulos

Associate Director – Property

Chris is responsible for property related deal origination and structuring, across all forms of property asset classes. He has over 20 years’ experience in property finance and transacted over $2 billion in property investment and development deals throughout his career.

A majority of Chris’ career was in senior relationship management roles within ANZ’s Commercial Property Finance division. Prior to joining EMK Thomas Capital, Chris spent six years in senior executive roles within the property funds management industry and responsible for new client acquisition and portfolio management.

Chris’ predominant area of expertise is working with small to large private family businesses providing advice and structuring solutions on:

  • Commercial Property Development Finance
  • Predevelopment Finance
  • Commercial Property Investment Finance
  • Facility review and restructuring

Co Lead Advisor

Jonathan Koziaris

Co-Managing Director

Co-Founder Jonathan Koziaris brings over 17 years of banking and commercial lending experience to the organization.

Having previously worked at 3 of the major banks in predominantly Senior Relationship Management roles, Jonathan brings a depth of experience in the Emerging Corporate, Property, and SME Diversified Industry segments.

Jonathan’s predominant areas of expertise include:

  • Working with diversified Emerging Corporate Business’ and SME’s seeking growth funding solutions
  • Property development and construction funding across the full spectrum of asset classes
  • Commercial property investment facility structuring and acquisition funding
  • Capital structuring cost analysis and advice
  • Transactional banking
  • Foreign exchange solutions and management strategies

The Challenges

Following the completion of a 232-apartment development, the client held 46 residual units funded by a non-bank senior debt facility. The lender’s exit strategy relied on an ongoing sell-down and lease-up program to meet major bank investment metrics.

Key challenges included:

  • Refinancing a $41 million non-bank facility into a major bank structure
  • Meeting stringent covenant requirements within tight timeframes
  • Navigating the low-yield characteristics typical of residential apartment stock
  • Coordinating sales and leasing strategies ahead of settlement

Our Solution

EMK Thomas was engaged six months prior to settlement to manage the refinance strategy and position the transaction for major bank approval.
Our approach included:

  • Working closely with the client to align sales velocity and leasing outcomes with lender covenants
  • Preparing a tailored funding proposal seeking a below-standard commencing ICR supported by step-up provisions
  • Incorporating mandated interest rate hedging to meet major bank policy requirements
  • Running a competitive process across major bank financiers to optimise pricing and structure

Client's Result

The result exceeded the client’s expectations, delivering:

  • Successful refinance of the $41M residual stock facility to a major Australian bank
  • Improved overall cost efficiency and pricing
  • A long-term capital solution aligned with the client’s investment and divestment strategy
  • A funding structure capable of supporting ongoing sales and stabilisation of the remaining asset pool

This outcome reinforces EMK Thomas’s ability to navigate complex investment lending scenarios and secure competitive capital outcomes for our clients.